What does the doctrine of laissez-faire mean?
A)That the government works best with limited market interference.
B)That the market works best with limited government interference.
C)That all externalities need to be connected by government action.
D)That social costs are as important as price costs.

Question

Quizplus · Accepted Answer

The doctrine of laissez-faire is a French term meaning "let do" or "let it be." It refers to the belief that the market economy functions best without government intervention. This concept has been associated with free-market capitalism, where prices, wages, and production levels are determined by the forces of supply and demand without government interference. The government's role is limited to protecting property rights, enforcing contracts, and regulating the market to prevent fraud and abuse. Therefore, option B is the correct choice.

What Does the Doctrine of Laissez-Faire Mean